NYSE$PRGO

Perrigo Company · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Perrigo's financial performance in Q2 2022 showed net sales increase, driven by strong demand for consumer self-care products and strategic acquisitions, despite facing inflationary headwinds and adverse currency translation.

Perrigo reported a strong second quarter with a 14.3% increase in net sales to $1.1 billion, driven by consumer self-care products and the acquisition of HRA Pharma. Despite inflationary pressures and currency translation impacts, the company saw improvements in adjusted gross margin and maintained its full-year outlook.

  • Net sales increased by 14.3% to $1.1 billion, with organic net sales up 17.2%.
  • Reported EPS was a loss of ($0.48), while adjusted EPS was $0.43 per diluted share.
  • The company submitted Opill® application to the FDA and launched NasonexTM 24HR in the U.S.
  • Fiscal year 2022 organic net sales growth outlook increased to 9.0%-10.0%, with adjusted EPS range updated to $2.25-$2.35.

Headline financials

Total Revenue

$1.12B

Previous: $981M+14.3%
EPS (adj)

$0.43

Previous: $0.50-14.0%
Adjusted Operating Income

$116M

Previous: $118M-0.9%
Reported Operating Margin

-0.6%

No prior period
Adjusted Gross Margin

36.5%

No prior period
Capital Expenditures

-$48.7M

Previous: -$68.4M+28.8%
Free Cash Flow

-$114M

Previous: -$126M+9.8%
Net Income

-$65.1M

Previous: -$57.7M-12.8%
Operating Income

-$6.9M

Previous: -$126M+94.5%
Gross Profit

$372M

Previous: $349M+6.6%
Cash & Equivalents

$485M

Previous: $318M+52.9%
Total Assets

$10.9B

Previous: $11.2B-2.8%
Stock-Based Comp

$11M

Previous: $14.1M-22.0%

Revenue & EPS history

Perrigo · Revenue · Quarterly

$1.12B

Q2 2022+14.3%vs Q2 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Perrigo · $1.12B total across 2 segments · Q2 2022

  • Consumer Self-Care Americas
    $728M+17.0%
  • Consumer Self-Care International
    $394M+9.8%

Forward guidance

Perrigo is increasing its fiscal 2022 organic net sales growth range outlook to 9.0%-10.0%, from 8.0%-9.0%, versus the prior year, due to continued strong global consumer demand. The Company is reaffirming its fiscal 2022 total net sales growth range outlook of 8.5%-9.5%, as the organic net sales growth outlook increase is expected to be offset by the worsening impact of currency translation. The Company expects to achieve a fiscal 2022 constant currency adjusted EPS range outlook of $2.40-$2.50 per diluted share and is updating its fiscal 2022 adjusted EPS range outlook to $2.25-$2.35 from $2.30-$2.40, due entirely to the worsening impact of currency translation.

Tailwinds

  • Increased fiscal 2022 organic net sales growth range outlook to 9.0%-10.0% from 8.0%-9.0% versus the prior year.
  • Reaffirms fiscal 2022 total net sales growth range outlook of 8.5%-9.5%.
  • Expects to achieve constant currency adjusted EPS range outlook of $2.40-$2.50 per diluted share.
  • Updates adjusted EPS range outlook to $2.25-$2.35 from $2.30-$2.40.
  • Continues to expect an adjusted effective tax rate of approximately 23%.

Headwinds

  • Worsening impact of currency translation is expected to offset the organic net sales growth.
  • Adjusted EPS range outlook updated to $2.25-$2.35 from $2.30-$2.40 due to currency translation.
  • Cannot reconcile its organic net sales growth to reported net sales.
  • Cannot reconcile its expected adjusted diluted EPS or constant currency adjusted EPS to diluted EPS under 'Fiscal 2022 Outlook'.
  • Uncertainty regarding the timing of, and the Company’s ability to obtain and maintain, certain regulatory approvals, including the sale of daily over-the-counter oral contraceptives.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-1.5%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-3.4%

Avg return

30 days after

48%

30 / 63 earnings

Positive

+20.2%

Q4 2024

Best reaction

-25.2%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.3%-5.0%-7.0%
Q4 2025-1.5%-21.0%-33.9%
Q3 2025-25.2%-29.4%-33.4%
Q1 2025+7.2%+9.4%+6.0%
Q4 2024+20.2%+22.1%+16.3%
Q3 2024+6.2%+5.4%+10.7%
Q2 2024+1.8%-1.5%+3.3%
Q1 2024-6.9%-8.1%-19.2%
Q4 2023-17.9%-18.2%+0.1%
Q3 2023+2.0%-0.2%+7.3%
Q2 2023+5.8%+7.3%-8.4%
Q1 2023+1.3%-2.2%-6.5%
Q4 2022+3.9%+6.9%-3.2%
Q3 2022-18.3%-14.9%-18.2%
Q2 2022-1.9%-1.7%-9.3%
Q1 2022+9.1%+15.6%+19.7%
Q4 2021+6.4%+4.8%+8.2%
Q3 2021-8.7%-9.8%-23.0%
Q2 2021-16.0%-16.6%-11.1%
Q1 2021+6.1%+6.4%+13.3%
Q4 2020+4.3%+1.7%+0.3%
Q3 2020-0.3%+1.5%+9.9%
Q2 2020-8.5%-6.1%-7.7%
Q1 2020-3.0%-4.4%+0.8%
Q4 2019-16.4%-12.1%-24.0%
Q3 2019-8.1%-9.3%-3.4%
Q2 2019-7.1%-5.4%-1.1%
Q1 2019+7.5%+1.7%-10.1%
Q4 2018+0.8%+4.0%-0.3%
Q3 2018-14.7%-13.0%-20.2%
Q2 2018-10.7%-11.3%-3.3%
Q1 2018-4.9%+0.4%-5.2%
Q4 2017+1.9%-6.0%-5.6%
Q3 2017+8.0%+5.9%+5.4%
Q2 2017+18.3%+17.2%+24.7%
Q1 2017+4.1%+5.0%+8.5%
Q3 2016+6.9%+6.7%-1.2%
Q2 2016-9.8%-7.2%-6.7%
Q1 2016-4.7%
Q4 2015-10.9%
Q3 2015-1.3%
Q2 2015+1.7%
Q1 2015-1.7%
Q4 2014+6.7%
Q3 2014-11.3%
Q2 2014-4.9%
Q1 2014+10.7%
Q4 2013-5.1%
Q3 2013-0.5%
Q2 2013+5.2%
Q1 2013-8.8%
Q4 2012-8.3%
Q3 2012-4.5%
Q1 2012+1.8%
Q2 2012-0.1%
Q4 2011+1.3%
Q3 2011-7.6%
Q2 2011+2.7%
Q1 2011+1.7%
Q4 2010+0.6%
Q3 2010-0.1%
Q2 2010-2.9%
Q1 2010+0.7%

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